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La Senza Corporation Posts an Increase of 143% in Net Earnings for the First Quarter of Fiscal 2007 over the First Quarter of Fiscal 2006

MONTREAL, QUEBEC--(CCNMatthews - May 31, 2006) - (TSX:LSZ) La Senza Corporation today reported net earnings of $4.1 million or $0.30 per share for the quarter ended April 29, 2006 compared to $1.7 million or $0.13 per share for the quarter ended April 30, 2005.

Excluding loss from discontinued operations of $879,000 contained in the results for the first quarter ended April 30, 2005, the comparison of net earnings from continuing operations is $4.1 million or $0.30 per share for the quarter ended April 29, 2006 versus $2.6 million or $0.19 per share for the quarter ended April 30, 2005. A write down of $1.0 million for property and equipment was made in the first quarter ended April 29, 2006 due to the conversion of Silk & Satin stores to the new La Senza Express banner.

Sales for the quarter ended April 29, 2006 increased 15.9% to $96.7 million from $83.4 million in the quarter ended April 30, 2005. Comparable store sales (stores open more than a year) increased by 6.0%.

Mr. Irving Teitelbaum, Chairman and Chief Executive Officer of the Corporation, said "I am pleased to note that the momentum generated by strong earnings in fiscal 2006 continued unabated into the first quarter of fiscal 2007. All of our divisions contributed to our enhanced earnings performance sending a clear signal of the widespread popularity of our brand. Our cash position, strengthened by robust sales, is well able to support our current expansion program of new stores for fiscal 2007."

The Board declared a quarterly dividend of $0.20 per share payable on June 28, 2006 to shareholders of record on June 14, 2006.

La Senza Corporation, headquartered in Montreal, is a specialty retailer with 306 corporate owned stores as at April 29, 2006, offering fashionable lingerie and sleepwear sold in its 227 "La Senza", "La Senza Express" and "Silk & Satin" stores, and fashionable apparel for girls sold in its 79 "La Senza Girl" stores. Stores are located in every province in Canada. In addition, 293 independently owned "La Senza" and "La Senza Girl" stores are operating in 29 other countries under license.

Forward-looking statement

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature relating to the Corporation and/or the environment in which it operates that are based on the Corporation's expectations, estimates and forecasts. These statements are subject to important risks, uncertainties and assumptions that are difficult to predict and/or are beyond the Corporation's control, as well as on management's reasonable evaluation of future events and are not meant as guarantees of future performance. A number of factors may cause actual outcomes and results to differ materially from those expressed. These factors include those set forth in other public filings of the Corporation. Accordingly, readers should not place undue reliance on these forward-looking statements. In addition, these forward-looking statements speak only as of the date made and the Corporation disavows any intention or obligation to update or revise any such statements as a result of any event, circumstance or otherwise.

Factors which could cause actual results or events to differ materially from current expectations include, among other things: the ability of the Corporation to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits; competitive conditions in the industries in which the Corporation participates; changes in consumer spending; general economic conditions and normal business uncertainty; customer preferences towards product offerings; seasonal weather patterns; fluctuations in foreign currency exchange rates; changes in the Corporation's relationship with its suppliers and licensees; changes in the Corporation's key personnel; interest rate fluctuations and other changes in borrowing costs; and changes in laws, rules and regulations applicable to the Corporation.

Beginning of Period 40,505 18,347-------------------------------------------------------------------- End of Period $22,470 $(3,372)----------------------------------------------------------------------------------------------------------------------------------------

The interim consolidated statements have been prepared in accordancewith Canadian generally accepted accounting principles ("GAAP") usingthe same accounting policies and methods of computation as were usedfor the consolidated financial statements for the year ended January28, 2006. They do not include all the disclosures required by GAAPin annual financial statements and, accordingly, should be read inconjunction with the consolidated financial statements for the yearended January 28, 2006.

2 - Seasonal Variations

Results of operations are subject to significant seasonal variationsand, accordingly, the operating income for any given interim periodis not necessarily indicative of the results of operations for a fullyear.

3 - Discontinued Operations

In January 2005, the Company approved a plan to discontinue the U.S.operations of La Senza and, accordingly, the results and cash flowsof the U.S. operations for the prior periods have been presented asdiscontinued operations. The net assets of these operations arepresented as assets/liabilities of discontinued operations in theperiods in which they qualify as held for sale. In the secondquarter of fiscal 2006, all of the U.S. stores were closed.

Earnings from continuing operations have been used as a controlnumber in determining if the inclusion of share options in thediluted per share calculation is dilutive. In addition, in periodswhere the inclusion of share options is dilutive, only those havingan exercise price below the average market price of subordinatevoting shares during the period are included in the computation. Thenumber of excluded share options was 65,000 for the three monthsended April 29, 2006 and 60,000 for the three months ended April 30,2005.

5 - Contingent Liabilities

Class Action Suit

On August 19, 2004, a class action suit was filed against the Companyand certain of its officers in the United States District Court,Central District of California, alleging that the Company and two ofits officers violated section 20A of the US Securities Exchange Actof 1934 relating to contemporaneous insider trading in relation tothe sale by the Company of its investment in The Wet Seal, Inc. ("WetSeal"). On September 12, 2005, the Court granted a motion todismiss, which was filed by the Company and its officers. An amendedcomplaint was filed with the Court on November 23, 2005. Defendantshave filed motions to dismiss plaintiffs' amended consolidatedcomplaint, which are scheduled to be heard by the court on June12, 2006. The Company and its officers deny all allegations ofwrongdoing made in this suit, consider the allegations groundlessand without merit, and intend to vigorously defend against thisaction. No provision has been made with respect to this matter.

United States Securities and Exchange Commission Inquiry

On February 4, 2005, the United States Securities and ExchangeCommission ("SEC") announced an informal inquiry relating to Wet Sealand requesting Wet Seal to voluntarily provide the SEC with adetailed chronology of events and certain documents pertaining to WetSeal's public announcements on August 5, 9 and 19, 2004. The SECinquiry also requested all information relating to the sale of WetSeal shares by the Corporation during 2004 and by two of its officersand their holding companies during 2005. On April 22, 2005, theCompany and the two officers of the Company each received a subpoenafor documents only from the SEC pursuant to a formal order ofinvestigation dated April 19, 2005. The subpoenas requested documentsrelating to the sale of Wet Seal shares by the Corporation in 2004and by the two officers and their holding companies during 2005, andrelated topics. The Company and its officers have provided documentsto the SEC in response to the subpoenas. No provision has been madewith respect to this matter.

Legal Proceeding

A legal proceeding was filed on February 28, 2006 against theCompany's subsidiary, La Senza Inc. by Victoria's Secret Stores BrandManagement, Inc., Victoria's Secret Direct, LLC and Victoria's SecretStores, LLC (the "Plaintiffs") in the Superior Court of Justice ofOntario. The Plaintiffs allege that La Senza Inc. has passed off its"La Senza ITEC" bra and related products as and for those of thePlaintiffs sold under the Plaintiffs trademark IPEX and has directedpublic attention to its products or business in a way that causes oris likely to cause confusion with the Plaintiffs business. ThePlaintiffs requested both an interim and an interlocutory injunction,both of which were denied by the court. The Plaintiffs are claimingdamages, including exemplary or punitive damages in the amount of$1,000,000; interest and costs of this proceeding. Neither theoutcome nor the extent of the potential damages, if any, which may beawarded is known. La Senza is disputing the claim and is vigorouslydefending against it. No provision has been made with respect to thismatter.

On June 16, 2005, the Company amended the share option plan so thatthe number of subordinate voting shares that may be issued pursuantto the share option plan is limited to 11% of the subordinate votingshares and multiple voting shares outstanding.

Share option transactions during the three month period ending April29, 2006 were as follows: